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Joe Anto

E: janto@pcecompanies.com

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Industry Trends

Consumer M&A Set to Return

With the election complete, easing interest rates, and a more lenient FTC chair incoming, the consumer sector is poised for a strong year in M&A activity. Private equity firms are expected to exit aged portfolio companies, particularly in food, beverage, and household products, as narrowing valuation gaps improves liquidity opportunities. Additionally, cross-industry deals are expected to gain momentum as consumer companies prioritize innovation through investments in AI, digitization, and supply chain automation.1

Aaron's Acquired by IQVentures

On October 3, 2024, The Aaron’s Company, a leading omnichannel provider of lease-to-own solutions for appliances, electronics, furniture, and home goods, was acquired by IQVentures, an investment firm, for $504 million. This transaction signifies the rising consumer demand for Buy Now, Pay Later (BNPL) solutions, driven by a preference for flexible payment options and the ability to defer spending on high-cost purchases.2

Consumer Sentiment Up, But Cautious Spending Persists

Consumer sentiment rose for the fifth consecutive month, likely driven by positive economic data and a strong stock market. Despite this optimism, 74% of consumers report trading down to cost-efficient alternatives, with both high- and low-income groups showing less interest in splurging. Among those who do splurge, dining out at restaurants and bars was the top choice, with 36% of respondents selecting it—highlighting a continued prioritization of social experiences even amidst cautious spending habits.3

Walmart Expands Marketing Capabilities

On December 3, Walmart acquired Vizio, a TV manufacturer, for $2.5 billion. Walmart aims to utilize Vizio’s data and advertising capabilities to improve its own advertising business through more personalized ads. Furthermore, the acquisition will improve Vizio’s competitive position with other television brands. This acquisition highlights the growing importance of marketing as consumer preferences evolve and price sensitivity increases.4

Nordstrom To Go Private

Nordstrom will go private in a $6.25 billion deal with the Nordstrom family and Mexican retailer El Puerto de Liverpool. Inflation, off-price competition, and e-commerce have driven down the value of Nordstrom and other retailers, with Nordstrom’s stock falling 70% since 2015. These challenges have left many retailers undervalued, creating opportunities for M&A. More deals will emerge, such as Saks agreeing to acquire Neiman Marcus and Macy’s rejecting a $7 billion bid from private investors.5

Largest Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • The Neiman Marcus Group LLC
  • Hudson's Bay Company
  • $2,650.00
  • VIZIO Holding Corp.
  • Walmart Inc.
  • $2,514.95
  • Chuy's Holdings, Inc.
  • Darden Restaurants, Inc
  • $844.37
  • G6 Hospitality LLC
  • Oravel Stays Limited
  • $525.00
  • The Aaron's Company, Inc.
  • IQVentures Holdings, LLC
  • $504.00
  • One Life Fitness, LLC
  • 26North Partners LP
  • $500.00
  • Real property in Kansas City and Shreveport
  • Gaming and Leisure Properties, Inc.
  • $395.00
  • Standard International LLC
  • Hyatt Hotels Corporation
  • $335.00
  • Waterford Lakes Town Center, LLC
  • Kimco Realty Corporation
  • $322.00
  • Olive & June, LLC
  • Helen of Troy Limited
  • $240.00

Other Financial Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • 222-key Kimpton Ink48 Hotel
  • Capstone Equities; LEYAD
  • $62.15
  • Crowne Plaza North Augusta
  • Flacks Group
  • $41.60
  • The Hilton Phoenix Resort at the Peak
  • Pivotal Group, Inc.
  • $39.50
  • AC Hotel Minneapolis Downtown
  • DiamondRock Hospitality Company (NYSE:DRH)
  • $29.89
  • Courtyard by Marriott Memphis Southaven and Residence Inn by Marriott Memphis Southaven
  • Woodvale, LLC
  • $25.00
  • Gardens of Annapolis
  • Corten Real Estate Partners; Real Asset Industries
  • $10.50

Other Strategic Buyer Transactions Closed

  • Target
  • Buyer
  • Value($mm)
  • University of St. Augustine for Health Sciences, LLC
  • Perdoceo Education Corporation (NasdaqGS:PRDO)
  • $138.00
  • Spartan Mat, LLC
  • Exchange Income Corporation (TSX:EIF)
  • $120.00
  • The Gates Hotel South Beach
  • Dean MB Propco LLC
  • $52.50
  • Kimpton Palladian Hotel
  • Tgh Palladian Lp
  • $36.00
  • Fairmount Park, Inc.
  • Accel Entertainment, Inc. (NYSE:ACEL)
  • $35.84
  • National Entertainment Network, LLC
  • Kiddleton, Inc.
  • $29.00
  • The Golden Hotel
  • The Bailey Company, Inc.
  • $23.50
  • Fairfield Inn & Suites in Tamarac, Florida
  • NexGen Hotels Management Inc.
  • $23.00
  • Sheraton Memphis Downtown Hotel
  • City of Memphis, Tennessee
  • $22.00
  • Hyatt House Shelton
  • GHM Properties, LLC
  • $19.70

 

Source S&P Capital IQ as of 1/17/2025 and PCE Proprietary Data

PCE Transactions

Contacts

Joe Anto

Orlando Office

407-621-2141 |

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Eric Zaleski

Chicago Office

847-239-2466 |

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Kyle Wishing

Atlanta Office

404-994-4186 |

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Data Assumptions

This report represents transaction activity as mergers & acquisitions, consolidations, restructurings and spin-offs. Targets are defined as U.S. Based companies with either foreign or U.S. based buyers. Transaction information provided is based on closed dates only.

Glossary

EBIT - Earnings Before Interest and Taxes
EBITDA - Earnings Before Interest, Taxes, Depreciation, Amortization
LTM - Last Twelve Months
TEV - Total Enterprise Value

Sources:

  1. 1. PwC. “Consumer markets: US Deals 2025 outlook.” PwC, 15, November, 2024
  2. 2. The Aaron’s Company, Inc. “IQVentures Completes Acquisition of The Aaron's Company.” The Aaron’s Company, 3, October, 2024
  3. 3. Becca, C. Christina, A. Kari, A. “An update on US consumer sentiment: A boost in optimism amid the holiday spending season.” McKinsey & Company, 11, December, 2024
  4. 4. Emma, R. “Walmart bought Vizio.” The Verge, 3, December, 2024
  5. 5. Savyata, M. Juveria, T. “Nordstrom family will take retailer private in $4 bln deal.” Reuters, 23 December, 2024
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